ulta Beauty (ULTA) closed at $ 403.78 in the last trading session, marking a move of + 0.56% from the previous day. The stock exceeded the daily loss of the S&P 500 by 1.69%. At the same time, the Dow lost 1.19% and the heavily tech Nasdaq gained 0.14%.
To date, the beauty retailer’s shares have gained 8.97% over the past month, outperforming the Retail-Wholesale sector’s gain of 8.49% and the S&P 500’s gain of 7.88% in that. period.
Investors are hoping for the strength of Ulta Beauty as it approaches its next earnings release. On that day, Ulta Beauty is expected to report earnings of $ 4.43 per share, which would represent 8.05% year-over-year growth. Our most recent consensus estimate predicts quarterly revenue of $ 2.13 billion, up 9.92% from a year ago.
Investors should also take note of any recent changes to analyst estimates for Ulta Beauty. These recent revisions tend to reflect the changing nature of short-term economic trends. With this in mind, we can consider the positive revisions of estimates as a sign of optimism on the company’s business prospects.
Based on our research, we believe these revisions to estimates are directly related to stock moves close to the team. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes into account these changes to estimates and provides a clear and actionable valuation model.
The Zacks Rank system, which runs from no. 1 (strong purchase) at no. 5 (strong selling), has a proven and externally audited track record of outperformance, with stocks no. 1 which have returned an average of + 25% annually since 1988. In the past 30 days, our consensus EPS projection has increased by 3%. Ulta Beauty currently has a Zacks rank of # 3 (Hold).
Digging into the valuation, Ulta Beauty currently has a forward P / E ratio of 21.62. For comparison, its industry has an average forward P / E of 11.1 which means that Ulta Beauty is trading at a premium for the group.
Investors should also note that ULTA has a PEG ratio of 2.11 right now. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the company’s expected earnings growth rate. Retail – Sundry stocks maintain a PEG ratio of 1.33 on average based on yesterday’s closing prices.
The Retail – Miscellaneous sector is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 97, which places it in the top 39% of all over 250 industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within the groups. Our research shows that 50% of the highest-rated sectors exceed the bottom half by a factor of 2 to 1.
You can find out more about all of these metrics and more at Zacks.com.
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Ulta Beauty Inc. (ULTA): Free stock analysis report
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